As we can see on the H4 chart, a breakout of minor resistance 187.36 suggested that rebound from 180.36 was resuming. More importantly, the development argues that a correction pattern at 195.86 is completed with three waves down to 180.36. The pair is expected to head towards the next resistance level of 95.86. The breakout of the medium-term trend-line support is taken as a sign of trend reversal. This is supported by bearish divergence condition inthe weekly MACD. Also, GBP/JPY was close to key cluster resistance of 61.8% retracement of 251.09 to 116.83 at 199.80, which is close to the psychological level of 200 . A break of 174.86 will confirm trend reversal and cause a deeper fall to 38.2% retracement of 116.83 to 195.86 at 165.67. In case of another rise, we should be cautious as strong resistance of 199.80/200.00 could finally bring reversal.

Daily fixation below 1.2300 opened the way towards the levels of 1.2000 and 1.1940 (the depicted weekly uptrend).

Bullish support was found around these levels. Higher lows were reached. Bullish pressure was applied to the resistance levels of 1.2450 and 1.2500 (previous tops).

On the other hand, the previous weekly candlestick was rather bullish. That is why an extensive bullish movement is seen on the chart.

A bullish breakout above the zone of 1.2770-1.2800 has been executed.

The long-term bullish target was projected towards the level of 1.3270 (100% Fibonacci Expansion) where bearish pressure should be expected. Bulls are revisiting this level today.

Bearish corrective movement towards the level of 1.2750 (Breakout Level) should be expected as long as USD/CAD bears keep defending the Fibonacci Expansion zone around 1.3270 – 1.3300.

Moreover, bearish persistence below 1.3100 (lower limit of the depicted Flag pattern) is needed to expose the next support level around 1.2910 and then 1.2800 where long-term buy entries can be considered.

Trading recommendations:

A counter-trend sell entry can be offered at the current price levels around 1.3330 (Fibonacci Expansion 100%). S/L should be placed above the level of 1.3400. T/P levels should be placed at 1.3200 and 1.3050.

On the other hand, conservative traders should wait for a bearish pullback towards the recent breakout zone (1.2800-1.2750) for a valid buy entry as the breakout level constitutes the recent strong support.

S/L should be located below the level of 1.2700. T/P levels should be located at 1.2850 and 1.2900.

The most recent weekly candlesticks came as bearish engulfing ones, closing below the level of 1.5450 (Head and Shoulders neckline).

This enhances the bearish side of the market in the long term. For the reversal pattern, an approximate projection target should be located at the level of 1.5050.

In the short term, the nearest demand level to meet the GBP/USD pair is located around 1.5200.

It constituted a prominent demand level that prevented further weekly decline. It is where the previous bullish engulfing weekly candlestick was initiated.

Previously, the zone of 1.5800-1.5880 acted as significant supply. It offered a valid sell entry few weeks ago. All T/P levels were successfully reached.

On the other hand, the level of 1.5550, which corresponded to the 50% Fibonacci level and the previous prominent top, was temporarily broken enabling further bearish decline towards 1.5350 where an ascending bottom was established.

Prominent supply/resistance existed around the level of 1.5770 (prominent 61.8% Fibonacci level) where the right shoulder of the depicted bearish reversal pattern.

That is why, a valid sell entry was suggested for retesting at 1.5770 three weeks ago. Most of its targets have been already achieved.

Moreover, the previous bearish movement found its way towards the level of 1.5200 (Prominent Demand Level), which prevented further bearish decline. Instead of it, evident bullish rejection was expressed (bullish engulfing daily candlesticks).

Trade Recommendation:

A valid sell entry should expect around the current price zone of 1.5500-1.5550 (recent resistance zone). It corresponds to (50% Fibonacci level) and the backside of a broken uptrend.

T/P levels to be projected towards 1.5200 then 1.5050, while S/L should be placed above 1.5600.

Recently, EUR/NZD has been moving upwards. The price tested the level of 1.7869. In the daily time frame, we can observe a demand bar in an average volume (looks like successful test of a supply bar). The intraday trend is bullish so watch only for potential buying opportunities on the dips. I found strong trading range between the levels of 1.8000 (resistance) and 1.7270 (support). In the H1 time frame, we can observe strength and no big weakness. Buying looks very risky. We may see potential re-testing of our resistance at the level of 1.8000.

Fibonacci Pivot Points :

Resistance levels:

R1: 1.7810

R2: 1.7850

R3: 1.7920

Support levels:

S1: 1.7670

S2: 1.7630

S3: 1.7555

Trading recommendations: Strength is on the market. The trend is upward so watch only for potential buying opportunities on the dips. Strong resistance is at the price of 1.8000.

USD/JPY is expected to trade in a higher range. Overnight, US stocks kept pushing higher as energy shares gained on rallying oil prices. The Dow Jones Industrial Average gained 0.8% to 16,739, the S&P 500 rose 0.9% to 1,995, and the Nasdaq Composite climbed 0.6% to 4,889. Nymex crude oil surged 5.7% to $47.15 a barrel, gold was up 1.5% to $1,119 an ounce and the 10-year Treasury yield hiked further to 2.301% from 2.281%. Meanwhile, the US dollar edged lower against other major currencies as the US government reported that CPI edged down 0.1% MoM in August as expected. It was the first decline since January. GBP/USD surged 1.0% to 1.5492, AUD/USD gained 0.8% to 0.7195, while USD/CAD was down 0.6% to 1.3168. The pair posted a rebound from the level of 120.30 (current key support) overnight. It remains on the upside and is well supported by the ascending 50-period intraday moving average (MA). Meanwhile, the intraday relative strength indicator (RSI) is round the neutrality level of 50. Once the first upside target at 121 (around yesterday's high) is reached, the pair is expected to proceed to the second upside target at 121.75 (around the high of September 11).

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 121.30 and the second target at 121.75. In the alternative scenario, short positions are recommended with the first target at 120. if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 119.35. The pivot point is at 120.35.

USD/CHF is expected to trade with bearish bias. The pair remains capped by the declining 50-period MA. Furthermore, the upward potential should be limited by its key resistance at 0.9720. Besides, the intraday RSI is below its neutrality level at 50 and lacks upward momentum. As long as 0.9720 holds as the key resistance, look for choppy price action with down targets at 0.9650 and 0.9625 in extension.

Trading recommendations:

The pair is trading below its pivot point. It is likely to trade in a lower range as long as it remains below the pivot point. Short positions are recommended with the first target at 0.9650. A break of that target will move the pair further downwards to 0.9625. The pivot point stands at 0.9720. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, long positions are recommended with the first target at 0.9765 and the second target at 0.9795.

GBP/JPY is expected to trade in a higher range as the pair is moving upside. The pair is well supported by its rising 20-period intraday MA, which stays above its 50-period. A double bottom pattern has been validated and calls for further upside. And the intraday RSI is positively oriented as well. Further upside movement is expected with the next horizontal resistance and overlap set at 188.45 at first. A break above this level would call for further advance towards a high of 189 reached on September 14. Only a break below the horizontal support at 186.60 would open the way to further weakness.

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 188.45 and the second target at 189. In the alternative scenario, short positions are recommended with the first target at 185.70 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 185.90. The pivot point is at 186.60.

NZD/USD is expected to trade in a higher range as there is bullish bias above 0.6310. The pair has entered a consolidation after striking against the first upside target at 0.6380 repeatedly. Meanwhile, a key support level has been formed at 0.6310 and should limit downside potential. If 0.6380 is finally broken, the pair is expected to proceed to the second upside target at 0.6400 (last seen on September 9).

Trading recommendations:

The pair is trading above its pivot point. It is likely to trade in a wider range as long as it remains above its pivot point. As long as the price holds above its pivot point, long positions are recommended with the first target at 0.6380 and the second target at 0.64. In the alternative scenario, short positions are recommended with the first target at 0.6290 if the price moves below its pivot points. A break of this target is likely to push the pair further downwards, and one may expect the second target at 0.6250. The pivot point is at 0.6310.

Since our last analysis, gold has been trading upwards. The price tested the level of $1,123.92. The intraday trend is neutral. According to the daily time frame, we can observe a demand bar in an average volume. According to the H4 time frame, we can observe a volume spike (potential buying climax) bar and weak close of the bar (closed on the middle), which means buying looks very risky at this stage and that selling is preferable. My advice is to watch for potential selling opporutnities after retracement. Support levels are at the prices of $1,107.60 and $1,100.00.

Daily Fibonacci pivot points :

Resistance levels

R1: 1,120.15

R2: 1,122.55

R3: 1,126.40

Support levels:

S1: 1,112.45

S2: 1,110.00

S3: 1,101.95

Trading recommendations: Volume spike (potential buying climax) is at the price of $1,123.60. Be very careful when buying gold at this stage and watch only for selling opportunities after retracement. We may expect strong reaction from sellers and potential absorption volume.